SEC backtracks on REX-Osprey staked ETFs
The SEC has raised concerns about the registration amendment for Solana (SOL) and Ether (ETH) staked ETFs from REX Financial and Osprey Funds, stating that their c-corp structure conflicts with the "ETF rule" under regulation 6C-11. The SEC expressed unresolved questions regarding whether these funds meet the definition of "investment company" under the Investment Company Act, indicating potential misleading disclosures in their registration statement. Analysts remain optimistic about a resolution, noting that REX lawyers believe an agreement can be reached. The approval of altcoin and staking ETFs is closely monitored by crypto investors, as it could introduce significant liquidity from traditional markets into crypto. Despite recent SEC guidance suggesting that crypto staking does not violate securities laws, decisions on staked and altcoin ETFs are still delayed, with final due dates expected in October.
